Thread by @dunkhippo33

Today’s post is for all aspiring or emerging fund managers.

Raising a fund isn’t easy but you got this!

A thread >>

1) I was thinking about this topic today when listening to @paigefinnn ‘s podcast w @MacConwell . Between minute 10:00-11:00, they talk about how hard fundraising is.

open.spotify.com/episode/76fL5J…

2) They talk about how lots of ppl say fundraising for a fund 1 is the hardest thing they’ve ever done.

(I would agree…behind birthing and being a parent)

And how starting a fund is really like starting a startup

3) 4 yrs into this journey w @HustleFundVC I echo this. Emerging fund mgrs have more in common w startup founders vs traditional VCs.

-there’s no salary at the start
-you struggle to raise
-you have to do a lot of mktg
-you’re your own boss
-but great upside if you do well later

4) I think a lot of ppl see starting a VC as this cushy thing but this podcast really illustrates that that is not the case.

Just like how founders need support groups, emerging VCs do too (and they exist)!

5) The 1st fund is hard. I think some emerging managers think it’s easy to raise if you’re well connected. I can tell you that even ppl who were previously top angels or at top firms really struggle to raise as well.

It’s just hard.

6) The reason? When you’re starting a new brand, it’s easy for funders of funds to say “it’s too early to invest”.

I’m sure startup founders can relate and chuckle.

7) I’ve written about my Fund 1 fundraise process in more depth here:

elizabethyin.com/2018/12/19/how…

8) The good news is if you make it and push through to complete your Fund 1, it’s does get easier.

In fact, just raising a fund 1 in itself is a feat. Many fund managers give up before closing a fund 1.

9) One of our LPs in our Fund 2 whom we pitched for Fund 1 without success told us that he made a list of 10 funds to track. These were funds he was really interested in potentially investing in.

Of the 10, we were the only ones who got a fund 1 done.

10) Sometimes just getting something done - no matter how brutal or unpretty it was - is enough to separate you from the pack.

And that goes for Fund 1s. If you really want it, just keep pushing through.

11) In this podcast they talk about getting nos and rejections.

Having been a founder before w a product startup, I think you just get used to the nos. It’s part of the job.

12) In my 20s, with my company, I felt all the highs and all the lows of doing a startup.

But now doing a startup endeavor is about enjoying the journey of what you’re trying to solve & being more zen in the process to be able to roll w the punches. And finding humor in it all.

13) I think my past startup experience made it easier to raise a Fund 1, in that I genuinely didn’t care if ppl didn’t want to invest.

You just move on without the emotions and find ppl who want to be in your corner.

So if you haven’t had this experience before, it’s jarring.

14) But push through and once you get a Fund 1 done, it’s a big accomplishment!

Fund 2 may or may not be easy per se but it will be easier.

You can do it!